Awfis, India’s first publicly listed coworking space company, is betting big on the rapid expansion of Global Capability Centres (GCCs) to drive its next phase of growth.
Led by founder and CEO Amit Ramani, the Bengaluru-based company reported a 44% year-on-year jump in revenue to Rs 318 crore in Q3 of FY25. EBITDA also surged by 59% to Rs 107 crore, pushing the margin up to 33.8%, an increase of 320 basis points.
This growth comes amid a broader boom in India’s coworking industry, especially driven by GCCs—offshore centres set up by multinational companies for business support, research, and innovation.
GCC Boom Fuels Coworking Surge
According to Ramani, the rise of GCCs is “single-handedly creating huge demand” for flexible office spaces.
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India is projected to house 2,550 GCCs by 2030, valued at around Rs 9.1 lakh crore ($110 billion).
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In 2024, GCCs accounted for 60% of total office leasing, up 41% from the previous year to 25.7 million sq ft.
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This demand is expected to hit 30 million sq ft in 2025.
Bengaluru and Hyderabad continue to be hotspots for knowledge and innovation-driven GCCs.
Awfis Elite: Custom Workspaces for Enterprises
To tap into this growing market, Awfis recently launched Awfis Elite—a premium workspace product designed for GCCs and large enterprises.
These spaces offer:
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Customizable, tech-enabled offices
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Short-term leasing flexibility
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Support for hybrid operations and remote teams
Ramani said this move helps meet the unique needs of global companies looking for ready-to-use, agile offices without long-term real estate commitments.
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Strong Financial Comeback and Market Confidence
After posting a loss of Rs 4.3 crore in Q1 FY25, Awfis turned the tide in Q2 with a profit of Rs 38.67 crore. In a market where many new-age tech stocks saw steep declines, Awfis’ share price hit an all-time high of Rs 945 earlier this year and closed at Rs 671.7 on April 3.
The company’s growth is also encouraging other shared workspace providers like Indiqube, DevX, and Smartworks to consider public listings in 2025.
Expanding Through Asset-Light Strategy
To grow without heavy capital investment, Awfis is following a Managed Aggregation (MA) model. Under this model, landlords share both the costs and profits, reducing the financial burden on the company.
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67% of total seats and 63% of centres now operate under this model.
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The company saw a 37% rise in seats, from 70,000 to 96,000 between 2023 and 2024.
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MA centres also grew 26%, from 107 to 135.
Ramani said this approach delivers high Return on Capital Employed (ROCE)—exceeding 75%—while minimizing risk.
Who Uses Awfis?
Awfis serves over 3,000 active clients, including:
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66% large corporations and MNCs
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20% small and medium enterprises
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13% startups
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Freelancers and individual professionals make up the rest
In Q3 FY25:
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Rs 234 crore (77% of revenue) came from coworking and allied services
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Rs 73 crore (23%) came from construction, design, and fit-out projects
The company recently signed a deal with NSE to design, build, and manage 1.65 lakh sq ft of office space in BKC, Mumbai. Clients include Lenovo, Capgemini, Subway, Clevertap, and Atlas Copco.
Tier 2 and Beyond: Tapping Small Town Potential
While metros still account for 80–85% of coworking demand, Awfis is now scaling up in Tier 2 cities.
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The company entered smaller towns in 2018, starting with Chandigarh.
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Since December 2023, its Tier 2 presence has grown 29%, from 17 to 22 centres.
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New expansions include Lucknow, with strong performance seen in Jaipur and Bhubaneswar.
Key drivers in smaller cities include:
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Government push for GCCs in non-metros
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Rise in demand post-COVID
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Affordable real estate and improving infrastructure
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Availability of skilled talent
Industries like ecommerce, IT, and quick commerce are especially active in these locations.
What’s Next for Awfis?
As more multinational firms and tech companies set up micro-GCCs—smaller setups with 40–50 employees—the demand for agile, customisable workspaces continues to rise.
Awfis is positioning itself as the go-to partner for companies looking to scale fast without committing to traditional leases.
Can this strategy keep delivering profits and expansion in a competitive market?
With flexible leasing models, strong financial backing, and a growing presence in emerging markets, Awfis is betting that India’s GCC wave is just getting started.